The crypto world just saw another dramatic crash involving the “Chill Guy” meme coin, which lost nearly half its value in just 30 minutes. Why? The team behind the cryptocurrency never actually had permission to use the meme.
Think of it like starting a Mickey Mouse business without Disney’s approval – it will cause problems. That’s exactly what happened here. Philip Bankss, the artist who created the original “Chill Guy” meme, came forward saying he never permitted anyone to use his artwork for a cryptocurrency. Even worse, he revealed that hackers had taken over his social media accounts and were pretending to be him to make the crypto project look legitimate.
The market reaction was swift and harsh. Investors rushed to sell their tokens, causing the price to plummet from about 48 cents to 26 cents. The total value of all Chill Guy tokens (what we call market cap) dropped to around $308 million – a 15% loss in just 24 hours.
The ChillGuy price chart displays a dramatic cliff-like drop, showing the token losing 45% of its value after IP rights concerns emerged.
The project had been doing quite well before this revelation. Launched on Solana’s blockchain in mid-November, it rode the wave of the viral “Just A ChillGuy” meme that was especially popular with younger social media users. It even reached a high point of $561 million in value after getting listed on Binance, a major cryptocurrency exchange.
This situation highlights a bigger issue in the world of meme coins. These tokens, which are often based on internet jokes or trending memes, are incredibly risky investments. They’re usually driven by hype and social media buzz rather than any real utility or value. It’s like betting on which joke will go viral next.
As Alex Beene, who teaches at the University of Tennessee at Martin, points out, meme coins are a double-edged sword. While they’ve gotten many new people interested in cryptocurrency who might never have considered investing before, they also tend to make the whole crypto industry look less serious to outsiders. After all, it’s hard to take an investment seriously when it’s based on a meme that could fall out of favor tomorrow.
The Chill Guy situation serves as a reminder: in the wild west of cryptocurrency, it’s crucial to do your homework before investing, even if – or especially if – something seems like just a fun trend.
